How things work
This section breaks down some of the most important terms and conditions of our agreement – like fees, interest and credit limits. So take a look over everything here so you know what to expect.
It’s important to understand your account is one, single account for all cards issued under our agreement – including any additional cards we may issue to you or an additional cardholder, as explained in Section 11.
You (or an additional cardholder) may only use your account for private, domestic and household use. It must not be used in ways that break the laws of Australia or another country where you or an additional cardholder use a card or your account.
1.2 Your cards
You’re responsible for any card that’s issued to you or an additional cardholder. This includes keeping the card safe and making sure that the card is only used by the relevant cardholder. You can find out more about what happens if you or an additional cardholder lose a card, a card is stolen or if you are concerned that you or an additional cardholder did not make a transaction in Sections 7 and 8.
A cardholder may transact on your account until the expiry date shown on the card issued to that cardholder.
Some merchants or financial institutions may not accept your card. We aren’t responsible if they choose not to.
There may be limits for how much you can spend when making purchases using a contactless reader without a PIN (tapping your card). We’ll notify you of these limits when you receive your card. You can’t withdraw cash using a contactless reader.
Most transactions for goods and services are considered purchases including buying a coffee, paying for a haircut or buying a service online (this could also include using BPAY® services).
A purchase doesn’t include cash advances or balance transfers – as explained below.
You buy a pair of shoes
Withdrawing cash or transferring money from your credit card account into another account are considered cash advances – along with certain transactions that we consider to be the equivalent of withdrawing cash from your account.
This can include purchasing traveller’s cheques, wire transfers, lottery and betting transactions or other similar substitutes for cash (such as crypto-currency). Keep in mind that cash advances typically attract a higher interest rate than purchases – so you should only use your card for cash advances when absolutely necessary.
You or an additional cardholder may be required to produce suitable identification when making a cash advance.
You’re at a cash only market – you don’t have your debit card, but you go to the ATM and withdraw cash using your credit card
A balance transfer is where, at your request, we allow you to use your account to pay an amount owed on a credit card at another financial institution. Other terms and conditions also apply to these balance transfer requests, which we’ll provide you with before or when you make the request.
You request to use your account to pay off a debt on a non-NAB credit card
1.4 How transactions work with your account
You agree that we’ll charge your account for the amount of each transaction made when you or an additional cardholder uses a card or account, as well as the amount of any interest, fees and charges payable under our agreement. You must pay the amounts we charge to your account at the times, and in the amounts, described in your agreement with us.
The amount you’re charged for a purchase transaction or cash advance is what’s shown on a receipt (or similar proof of transaction).
We may assign any date we reasonably consider to be appropriate for any charge to your account or any amount that reduces your outstanding balance (for example, a refund or payment).
We may also change the amount or date of any of those charges or reductions – for example, when we need to make a correction. We’ll always do this in compliance with the relevant law and so that a charge to your account is never made earlier than the date the relevant transaction occurred.
1.5 How your credit limit operates
Your credit limit is a cap on how high the outstanding balance on your account can go. How much credit is available to you is whatever your credit limit is – minus the outstanding balance and any transactions which have been made but not yet added to your outstanding balance. You share this limit with all additional cardholders.
You can tell us what your preferred credit limit is when you apply for your card. We won’t give you a limit that’s more than what you’ve requested – and you’ll see the agreed amount in your offer details. You can reduce your credit limit online, or by calling us on the number shown at the bottom of this page . We’ll only increase your credit limit if you apply to do so. There are more details on how to request increases or decreases to your credit limit in Section 10.
We may allow you to temporarily exceed your credit limit – if that happens, this excess amount may form part of the total minimum payment shown in your next statement. It may also mean you will pay a greater amount of interest.
1.6 How your cash advance limit operates
The cash advance limit is the maximum amount of cash advances that may be included in your outstanding balance. This is usually the same as your credit limit, but in some cases may be lower. We’ll notify you if your cash advance limit is lower than your credit limit.
This section describes when and how we calculate and charge interest, fees and charges on your account. You’ll see references to a statement period throughout – which refers to the set period of time we use to record activity on your account (usually 30 days, and usually ending on the same day each month). In Section 3, we describe some ways you can avoid or reduce interest on your account.
2.1 How interest works with different transaction types
When an amount is charged to your account, it’s the same as us lending you that amount. And like a loan, we will charge your account with interest, unless the amount is a purchase transaction and an interest free period applies.
In Section 1.3 we explained the different types of transactions that can be made on your account. How you incur interest on these transactions varies too. The interest rate for cash advances, for example, is typically higher than the interest rate for purchases.
While you incur interest differently depending on the type of transaction, we will always charge that interest to your account (by adding it to your outstanding balance) on the last day of each statement period.
How interest work in different transaction types Types of transactions When interest is incurred When interest is charged PurchasesWhen interest is incurredNever
If you’re in an interest free period (if your account is eligible)
If you’re not in an interest free periodWhen interest is chargedAt the end of the statement period
Cash AdvancesWhen interest is incurredDailyWhen interest is chargedAt the end of the statement period Balance TransfersWhen interest is incurredDaily
Except that, if the promotional interest rate for your balance transfer is 0% p.a., you’ll incur no interest for any day until your promotional offer expiresWhen interest is chargedAt the end of the statement period
Calculating the daily interest rate
To calculate the daily interest rate for each transaction type, we take the applicable annual interest rate and divide it by 365. The applicable annual interest rate depends on the type of transaction, whether an interest free period applies and any special promotional rates that may be available to you.
You can find information about the current interest rates for particular transaction types on our indicator rates for personal lending page. Your offer details will also set out the interest rates that apply as at the date specified in your offer details.
A special promotional rate is an offer from us for a set period of time. These offers can apply to specific purchase or cash advance transactions or balance transfers. They are lower than the usual interest rate. The details of any promotional rates will be outlined in your offer details or at the time we offer these rates to you.
Working out the amount of interest incurred each day
The amount of interest you incur daily is worked out by multiplying the applicable daily interest rate by any outstanding balance you have for each transaction type at the end of the day.
Interest is incurred on the amount of a transaction from the date the transaction is made, until the date it is paid off in full. You don’t incur interest for a transaction on the day it is paid off in full.
How interest is added up
The following table shows an example of how interest is incurred on purchases from the start of a statement period that doesn’t have an interest free period (more on this in Section 2.4). Purchases are made on day 1, day 3 and day 30. The daily interest rate on purchases for this example is:
19.99% per annum / 365 = 0.055%
How interest is incurred on purchases Purchases Outstanding balance total Daily interest rate Daily incurred interest Statement open balancePurchasesOutstanding balance total$20Daily interest rateDaily incurred interest Day 1Purchases$180Outstanding balance total$200Daily interest rate0.055%Daily incurred interest$0.11 Day 2Purchases$0Outstanding balance total$200Daily interest rate0.055%Daily incurred interest$0.11 Day 3Purchases$100Outstanding balance total$300Daily interest rate0.055%Daily incurred interest$0.16 Day 4 - 29Purchases$0Outstanding balance total$300Daily interest rate0.055%Daily incurred interest$0.16 every day Day 30Purchases$70Outstanding balance total$370Daily interest rate0.055%Daily incurred interest$0.20
Total interest charged $4.74
Equal to the sum of all daily interest from Day 1 to 30
(rounded to the nearest cent)
2.3 When interest is charged to your account
We charge interest incurred during a statement period to your account at the end of the statement period. This includes interest for the last day of the statement period. When we charge interest, we round it to the nearest cent.
All NAB Credit Cards covered by this agreement (except the card formerly known as Visa One Fee-Free card or any other card where your offer details say otherwise) are eligible to have interest free periods on purchases if the requirements described below are met. Interest free periods only apply to purchase transactions.
If you’re eligible for an interest free period you won’t incur interest on any purchase transactions for any day in an interest free period. See Section 1.3 for more information on the different transaction types.
You start an interest free period the first time you use your card or transact on your account. In order to continue this and any other interest free period, you must pay the closing balance (or the interest free days payment, if you have a balance transfer) shown on your statement in full by the due date shown on your statement. Your due date is 14 days after your statement date. However, if you have one of the NAB Low Rate Cards, it will be 25 days after your statement date.
If you pay less than your closing balance (or the interest free days payment, if you have a balance transfer) shown on your statement by the due date, your interest free period will end. You will incur interest on purchase transactions from the day after the due date on your statement.
Example 1 – Continuing your interest free period
Mary has an interest free period and receives a statement with a closing balance of $1000. She pays her closing balance in full within the payment period. Her interest free period for all purchase transactions continues.
Example 2 – Losing your interest free period
James makes purchases totalling $1,000 on his credit card and pays $600 to his credit card balance. James loses his interest free period because he did not pay the remaining $400 in the payment period.
If you’re not in an interest free period, there are two ways you can start a new one:
- Begin your statement period with either a zero balance or a deposit balance on your account.
- Pay the closing balance (or the interest free days payment, if you have a balance transfer) shown on your statement in full by the due date shown on your statement. If you use this method, the interest free period will begin on the day after you make this payment. However, you will see interest charged on outstanding purchase balances on your next statement for the time before you made the payment. This is called residual interest and will be covered in the next example.
Example 3 – Starting a new interest free period and residual interest
Priya starts out with no interest free period. She receives her statement on the 24th of April and pays her closing balance on the 2nd of May, which is 6 days before her due date. Her interest free period begins from the next day. On her next statement she will see an interest charge included in her statement closing balance for purchase transactions for the 8 days she did not have an interest free period. This is the residual interest charge.
2.5 Fees and charges
The fees and charges we’ll apply to your account are shown in your offer details.
If we change or introduce new fees or charges, we’ll communicate with you as described in Section 15. We may also decide to delay any fees or charges – or not charge you at all. An example of when we may do this is to assist you if you fall into financial difficulty.
Information on our standard fees, charges and any interest rate is available on nab.com.au and on request.
2.6 How interest, fees and charges added to your account incur interest
When we add interest, fees or charges to your account, your outstanding balance will increase and the interest, fee or charge will be treated as a transaction on your account.
For this purpose, where the interest, fee or charge relates to a balance transfer or a cash advance, it will be treated as the same kind of transaction. Any other interest, fee or charge is treated as a purchase transaction. For example, a fee for withdrawing money from an ATM is treated like a cash advance, and interest on amounts used to buy a pair of shoes is treated like a purchase.
This means that, from the date the interest, fees or charges are added to your account, you will incur and be charged interest on these amounts in the same way as for the relevant transaction type unless these amounts are to be treated as a purchase transaction and an interest free period applies.
You can avoid interest by making the required payments by the due date shown on each of your statements which are necessary to continue your interest free period for purchase transactions – and by avoiding using your account for cash advances and paying off balance transfers before the promotional period ends.
If you don’t do this and interest is charged to your account, you can reduce the amount of interest by paying off as much of your outstanding balance as possible – and as soon as you can. We’ve described this in more detail below.
3.1 Make the most of interest free periods (for purchase transactions)
You’ll be eligible for interest free periods for purchase transactions unless you have a card formerly known as Visa One Fee-Free card or your offer details says otherwise. This means you won’t incur interest on purchase transactions for any day during that interest free period.
You can minimise interest charges by staying in an interest free period. You’ll start with an interest free period the first time you use your card – and can continue it by paying the closing balance (or the interest free days payment, if you have a balance transfer) shown on your statement in full by the due date shown on your statement. If you don’t, you’ll incur interest on purchase transactions from the next day. For more information on interest free periods, see Section 2.4.
3.2 Reduce your outstanding balance for cash advances
Interest free periods do not apply to cash advances. This means you start to incur interest from the day you make the cash advance. As the interest rate for cash advances is typically higher than for purchase transactions, it’s a good idea to try to pay the closing balance by at least the amount of the cash advances shown in your statement as soon as possible.
3.3 Reduce your outstanding balance for balance transfers
Interest free periods don’t apply to balance transfers – but special promotional interest rates may apply for a promotional period. We’ll let you know about these before you make the balance transfer. It’s a good idea to pay the outstanding amount of a balance transfer in full before the promotional period ends. Once that period is over, the unpaid amount will be considered a cash advance – and we will charge interest on it at the applicable rate.
3.4 Reduce your outstanding balance sooner
You can choose to pay more than your required total minimum payment to reduce your outstanding balance amount. This will reduce the amount of interest that’s incurred daily – and then charged to your account. On your statement you’ll be able to see how long it will take you to pay off your closing balance, as well as how much interest you will pay, if you only repay the total minimum payment.
Keep in mind
You can make additional payments during a statement period – but this won’t be counted as a payment of the total minimum payment that you’ll see in your statement at the end of that statement period.
- you will still need to pay the total minimum payment by the due date shown in your statement – regardless of how many additional payments you’ve made before that statement period ends.
- you should always consider whether you’ll have sufficient funds to make future total minimum payments before making any additional payments.
However, if at the end of a statement period, you’ve reduced your closing balance (including any interest you have incurred for any day in that statement period) to zero or to a deposit balance, there will be no total minimum payment shown in your statement for that period.
Your statement shows all of the activity on your account for a period of time (usually 30 days, and usually ends on the same day of each month). This period of time is called your statement period. Your statement also contains information on how much money you owe us and how much you need to pay by the due date. We’ll send you a statement at the end of a statement period, except when it’s not required by law. You can also access these statements electronically on the NAB app and NAB Internet Banking.
4.2 Making sense of your credit card statement
On the first page of your statement you’ll find information about your account, a summary of the charges to your account over the statement period, the amount you owe us, the total minimum payment you must make and the further payments you can make (which you’ll find more information about below). You’ll also find a list of transactions – along with any fees and charges applied to your account for the statement period.
Your statement will show the following amounts
Amounts shows in transactions Total minimum payment The minimum amount you’re required to pay by the due date. We’ve described how it’s calculated in Section 4.4. You must pay at least this amount by the due date. Closing balance The total amount you owe us at the end of the statement period. It’s also how much you’ll need to pay by the due date to start – or continue – an interest free period for purchase transactions (unless your statement shows an interest free days payment – see below) Interest free days payment (if you have a balance transfer) You’ll only see this if you have an outstanding balance transfer at the end of the statement period. This is the amount (instead of your closing balance) you need to pay by the due date to start – or continue – an interest free period for purchase transactions
4.3 What to do when you get your statement
1. Check your transaction history
It’s important to check your statement carefully as soon as you receive it. Get in touch with us if you find anything you disagree with or need to dispute a transaction. Make sure you check Section 8 as well, as there are time restrictions for lodging a transaction dispute.
You can contact us using any of the ways shown at the bottom of this page.
2. Pay at least the total minimum payment by the due date
Not making the total minimum payment by the due date could lead to additional charges. Late or missed payments could also show up on your credit report, along with any default or serious credit infringements. You can see how we calculate your total minimum payment in Section 4.4 below.
3. Consider paying more than the total minimum payment
If you’d like to start an interest free period on purchase transactions – or keep an existing period going – you’ll need to pay the closing balance (or the interest free days payment, if you have a balance transfer) by the due date on your statement.
You will benefit by doing this, as you will incur no interest for purchase transactions for any day in an interest free period.
There are other things you should think about if you wish to pay more than the total minimum payment. This is discussed further in Section 3.4.
The following amounts are added together to calculate the total minimum payment you see in your statement at the end of each statement period:
If your closing balance is less than $25, then your monthly payment is your closing balance.
Otherwise, your monthly payment is the higher of the following:
- $25; or
- an amount equal to the relevant percentage of your closing balance (other than an amount of your balance that we’ve notified you as being excluded from this total). This percentage is calculated and rounded separately to the nearest cent for each type of transaction in your closing balance (as referred to in your Balance and Interest Breakdown on your statement).
The relevant percentage is specified in your offer details.
We may change the relevant percentage referred to above or the way we calculate the monthly payment and, if we do, we will notify you.
Past due or overlimit amount
A past due amount is any amount you had to pay in your previous statement period, but did not.
An overlimit amount is the amount of your closing balance that’s above your credit limit.
If you have one of these, it’ll be included in your total minimum payment and will need to be paid straight away. If you have both, the higher of the two amounts will be included in the total minimum payment to be paid straight away.
This section deals with international transactions. This will be relevant for you if you or a cardholder:
- use a card overseas; or
- use your account in Australia but the goods or service provider (commonly referred to as a ‘merchant’), financial institution or entity processing the transaction is located outside Australia.
Where you have an international transaction, the amount we charge to your account will always be in Australian dollars – no matter which currency you pay in. The exchange rate used to calculate the amount of Australian dollars will depend on the currency you decide to pay in.
Exchange rates If you decide to pay in: The exchange rate will be: Australian dollarsThe exchange rate will be:the rate used by the merchant to convert the foreign currency amount into Australian dollars Foreign currencyThe exchange rate will be:a rate:
- selected by Visa from the range of rates available in wholesale currency markets for the applicable processing date; or
- mandated by a government or governing body and in effect for the applicable processing date
If you receive a refund for an international transaction, the refund amount will be calculated by Visa or the merchant using the exchange rate on the date the refund is processed. This may be different to the exchange rate used when you made the transaction – which means the refund you’re given in Australian dollars could be more or less than the Australian dollar purchase amount.
Fees you’re charged on international transactions
We’ll charge you a NAB International Transaction Fee when the international transaction is charged to your account – even if it was charged in Australian dollars. This is made up of two parts – a fee that Visa charges us for the international transaction (that we then pass on to you), as well as our own fee. You will see this as a single fee on your statement.
You’ll see the amount of our NAB International Transaction Fee in your offer details and at our Personal fees and charges page.
Withdrawing cash from overseas ATMs
Any withdrawal from an overseas ATM will incur a NAB International Transaction Fee and a cash advance fee, along with any local ATM fees. Look through the Personal Banking fees and charges for full details.
Use the NAB app, NAB Internet Banking, NAB Telephone Banking or any other payment option we make available – make sure you check the NAB help page for any cut-off times, as a payment made after these cut-off times may be treated as being received by us on the next business day
Set up a direct debit from another NAB account or an account from another bank – we process direct debit payments on the due date
BPAY® from a bank or financial institution other than NAB – keep in mind it may take up to 2 business days for BPAY payments to be received by us
Post a cheque to the address shown on your statement – make sure you allow time for the cheque to be received by us in the post
Pay at any NAB branch, or Australia Post outlets (Bank@ Post), during their opening hours
5.2 How we apply your payment to your account
Once we receive your payment, we’ll apply your payment to reduce your outstanding balance (or increase any deposit balance you may have). This is done by:
- Taking all amounts which make up your closing balance on your most recent statement and ordering them from amounts which attract the highest interest rate to amounts that attract the lowest rate. We then apply your payment to reduce these amounts which remain unpaid in that order.
- If any part of your payment remains available, we take all of the amounts added to your outstanding balance since the most recent statement, and order them from amounts which attract the highest interest rate to amounts that attract the lowest rate. We then apply the remaining part of your payment to reduce these amounts which remain unpaid in that order.
- If any part of your payment still remains available, this will form part of your deposit balance. If you have a deposit balance, it will be applied to pay any amount charged to your account as soon as that amount is charged. We won’t pay interest on any deposit balance.
We may need to wait until your payment clears before we reduce your outstanding balance (for example, where you make a payment by cheque or direct debit payment).
If a payment doesn’t clear (for example, where you make a payment by cheque or direct debit and the cheque is not honoured or we don’t receive value for the direct debit), we will reverse your payment amount (as a dishonoured payment) and the amount of the reversal will be treated as a purchase.
We may need to send each other communications from time to time. We call these ‘notices’ – and they include offer details, terms and conditions, statements, notices about your account or changes to our agreement, or other documents and communications.
You can give us notice – and we can give the same to you – in the ways described ‘In writing’ below. In addition, we can give you notice by the ‘By publication’ method described below.
We can give each other notices at a NAB branch or registered office.
We consider the notice received on the date on the notice or the date it’s handed over, whichever is later.
We may send you a notice by post to your postal address recorded on our file – so, let us know if your postal address changes. Sometimes, a notice may be a message in your statement.
If you would like to send us a notice by post, our mailing address is: Consumer and Commercial Cards GPO Box 9992 Melbourne VIC 3001
We consider the notice received on the date on the notice or when it would have been delivered in the ordinary course of post, whichever is later.
We can communicate with each other by providing notices by electronic methods (as permitted by law). These methods may include: email, SMS, a message in your statement, or through NAB Internet Banking or the NAB app.
If we communicate with you by email or SMS, we will use the email address or mobile phone number recorded on our file. If you communicate with us by email or SMS, you will need to use an email address or mobile phone number we provided for you to use for that specific purpose.
We consider the notice received on the date on the notice or when it reaches the addressee’s electronic address, whichever is later.
You’ll need to regularly check your electronic communication for any notices we’ve sent you – and let us know if you change your contact details, such as your email address or mobile phone number.
We may publish notices electronically and notify you that we have done this.
This includes publishing the notice in NAB Internet Banking, the NAB app, in your statement or on our website, in which case we will usually let you know by SMS or email that the notice is available to view.
We consider the notice received when we let you know that the notice is available for viewing.
We may publish notices in print and notify you that we have done this.
This includes publishing in a newspaper (for example, for an increase in interest rates) in which case we will let you know by other communication such as a letter, SMS, message in your statement or email that we have done this.
We consider the notice received when we let you know that we have published a notice.
How your credit card works
How your credit card works
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